UN steps up criticism of IMF and World Bank

From the ashes of World War II, three institutions were created as linchpins of a new global order. Now, in an unusual move, the top official in one — the secretary-general of the United Nations — is pressing for major changes in the other two.

Antonio Guterres says the International Monetary Fund has benefited rich countries instead of poor ones. And he describes the IMF and World Bank 's response to the COVID-19 pandemic as a "glaring failure" that left dozens of countries deeply indebted.

Guterres' criticism, in a recent paper, isn't the first time he's called for overhauling global financial institutions. But it is his most in-depth analysis of their problems, cast in light of their response to the pandemic, which he called a "stress test" for the organizations.

His comments were issued ahead of meetings called by French President Emmanuel Macron in Paris this week to address reforms of the multilateral development banks and other issues.

Guterres said it's time for the boards of the IMF and the World Bank to right what he called the historic wrongs and "bias and injustice built into the current international financial architecture."

Guterres also said the institutions haven't kept pace with global growth.

He said the World Bank has $22 billion in paid capital, the money used for low-interest loans and grants for government development programs. As a percentage of global GDP, that's less than one-fifth of the 1960 funding level.

Many developing countries are in a deep financial crisis, exacerbated by inflation, rising interest rates and a standstill in debt relief.

"Some governments are being forced to choose between making debt repayments or defaulting in order to pay public sector workers," Guterres...